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What is EBIT (Earnings before Interest and Taxes)
Earnings before Interest and Taxes (EBIT) is a term that refers to financial result before interest and taxation. It assesses business performance regardless of the chosen method of financing (interest) and taxation.

Earnings before Interest and Taxes, abbreviated as EBIT. It is a term that refers to financial result before interest and taxation. It assesses business performance regardless of the chosen method of financing (interest) and taxation.

Calculation: EBIT = EBT + Interest Cost

Use of EBIT in practice: in a business it is used by CFO in financial analysis to analyze ratios. This indicator is preferred for its complexity by investors.

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Last update: 16.08.2016

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